With the rising interest rates and the Fed saying they will "taper off" the buying of MBS, we have seen mortgage rates skyrocket. There have been rapid increases in mortgage rates as of late. We are seeing clear signs of demand destruction and cooling within the US. So what does this mean going forward? Many people are asking if housing is posed to cool further or if there is a possibility that it will bounce back. In this post, we will go through that data.
Canadian here: the Canadian economy is a joke. Chronic underinvestmemt in productive capacity, and chronic underinvestmemt and underutilisation of real estate. Our high prices are an artifact of snail's pace construction relative to demand growth. We are, indeed, sleepwalking towards mediocrity and stagnation in the coming years.
Wanted to see what you think of iShares MBS ETF (Ticker: MBB). I don't own it but it seems to have bottomed last June, which was lower than it's level in 2008. From what you say, you expect it to go even lower, is that your view?
Housing More Pain Ahead?
Canadian here: the Canadian economy is a joke. Chronic underinvestmemt in productive capacity, and chronic underinvestmemt and underutilisation of real estate. Our high prices are an artifact of snail's pace construction relative to demand growth. We are, indeed, sleepwalking towards mediocrity and stagnation in the coming years.
https://www.yahoo.com/now/david-rosenberg-roof-cave-canadian-142359987.html
You may find the above interesting; Canadians have bet big with variable rate mortgages. What could go wrong?
Hey Deer Point,
Wanted to see what you think of iShares MBS ETF (Ticker: MBB). I don't own it but it seems to have bottomed last June, which was lower than it's level in 2008. From what you say, you expect it to go even lower, is that your view?